After the merge with the Beacon network, Ethereum has been in a very peculiar position with many investors moving away from the asset. The massive selloff, which was expected thanks to early reports about many whales transferring ETH to exchanges, caused even more turbulence and forced ETH to lose over 12% during the first six hours after the merge concluded.

Since then, the market has been stabilizing and some experts started talking about the potential change and an upcoming recovery. Technical analysis signed that the asset was on its way to the next $1450 support level by October 4, but the recent stabilization indicates that it won’t happen. At least, not as soon as experts and enthusiasts believe.

Ethereum is in a very weird situation

ETH had two rocky weeks in a row. The cash flow has been negative for 6 consecutive weeks despite some signs that the crypto market is becoming a haven for investors running away from the terrors of inflation. However, ETH has been losing both the trading volume and value during the period after the Merge.

The asset has strong competition which may be the cause of spread-out investment efforts that do not improve the position of ETH. Cardano (ADA) has been losing in terms of price, but the volume numbers were solid. Algorand (ALGO) is also doing surprisingly well despite the current depressive state of the cryptocurrency market. Ethereum may be sharing the attention of investors who are interested in PoS networks with Algorand and Cardano.

It is a probable reason why Bitcoin has been doing very well compared to indices and stocks as well as many other cryptocurrencies.

Should we expect ETH to gain some ground?

Experts are divided and do not know what will happen to the asset in the nearest future. Even long-term forecasts seem unreliable and pulled out of thin air because uncertainty is the only constant in many financial markets including crypto. Hopefully, we will see a massive recovery by the end of October.